Eurosystem Introduces Appia Project to Strengthen Role of Central Bank Money in Tokenised Finance

Eurosystem Introduces Appia Project to Strengthen Role of Central Bank Money in Tokenised Finance

(IN BRIEF) The Eurosystem has published the roadmap for Appia, a strategic initiative aimed at supporting the development of a European tokenised financial ecosystem while ensuring that central bank money remains central to the monetary system. The project will involve collaboration between the Eurosystem, market participants, and public institutions to explore how distributed ledger technology and tokenisation can improve efficiency and innovation in wholesale financial markets. Appia will complement the Pontes initiative, which will provide DLT-based settlement in central bank money starting in 2026. The Eurosystem plans to publish a blueprint outlining its vision for tokenised financial markets in 2028. The initiative builds on extensive experimentation carried out in 2024 and seeks to strengthen Europe’s financial infrastructure, support innovation, and reinforce the international role of the euro.

(PRESS RELEASE) FRANKFURT, 12-Mar-2026 — /EuropaWire/ — The Eurosystem has unveiled the roadmap for Appia, a strategic initiative designed to support the development of a European tokenised financial ecosystem while maintaining the central role of central bank money within the financial system. The project will bring together public and private stakeholders to help build a more integrated and resilient framework for tokenised wholesale financial markets across Europe.

The initiative reflects the growing importance of tokenisation, a process through which financial assets are issued or represented as digital tokens, typically recorded on distributed ledger technology (DLT) networks. In wholesale financial markets, such technology has the potential to improve efficiency by allowing multiple stages of an asset’s lifecycle—from issuance and trading to settlement and custody—to be managed on a single platform. Tokenisation can also enable automated processes through smart contracts, opening the door to new financial services and operational models.

Piero Cipollone, a member of the European Central Bank’s Executive Board, explained that the Appia initiative aims to bridge the gap between today’s financial system and future tokenised markets while preserving the role of central bank money as a trusted settlement asset. According to Cipollone, maintaining the connection between emerging technologies and central bank money is essential to ensuring stability and reliability in evolving financial infrastructures.

The development of tokenised wholesale central bank money within the Eurosystem will rely on two complementary initiatives: Pontes and Appia. Pontes will serve as the Eurosystem’s distributed ledger-based solution enabling settlement in central bank money for DLT transactions and is scheduled to launch in the third quarter of 2026. Appia, by contrast, takes a broader and longer-term perspective by exploring how a comprehensive tokenised financial ecosystem could function across Europe.

As part of the initiative, the Eurosystem intends to define its long-term vision for tokenised markets in a blueprint expected to be published in 2028. In the interim, the Appia roadmap will guide collaborative work with market participants, shaping the evolution of tokenised financial infrastructures and services across the region.

A key objective of the initiative is to ensure that central bank money remains the anchor of the monetary system as digital financial technologies continue to develop. By maintaining this role, the Eurosystem aims to support effective monetary policy implementation while safeguarding financial stability and the smooth functioning of payment and settlement systems.

The project also seeks to strengthen Europe’s financial ecosystem by promoting innovation, improving market integration, and increasing competitiveness. At the same time, the initiative is expected to support Europe’s strategic autonomy in financial market infrastructure and reinforce the international role of the euro.

Appia will be developed through close collaboration with financial institutions, technology providers, public authorities, and academic experts. The Eurosystem has invited stakeholders to provide feedback and express interest in participating in the analytical and practical work associated with the project. A feedback questionnaire has been released alongside the roadmap to gather input from the market.

The initiative builds on earlier exploratory work conducted by the Eurosystem in 2024, when extensive testing of distributed ledger technology was carried out within wholesale financial markets. Between May and November of that year, 64 market participants took part in more than 50 experiments and pilot projects, exploring various use cases and technical models for tokenised financial services.

Following these experiments, the ECB Governing Council announced in July 2025 that the Eurosystem would move forward with a structured strategy to guide the development of tokenised market infrastructure.

As part of the Appia initiative, the Eurosystem will analyze different potential architectures for DLT-based financial networks. This includes evaluating whether a single shared infrastructure or a system of multiple interconnected networks would best support the future of wholesale financial services. Establishing common standards and governance frameworks within Europe will be a central element of this work.

Notes

Between May and November 2024, the Eurosystem conducted extensive exploratory work on the use of distributed ledger technology (DLT) and related innovations in wholesale financial markets. Sixty-four market participants took part in more than fifty trials and experiments, testing a broad range of use cases and technical approaches. In July 2025, the ECB’s Governing Council announced a plan to build on these findings and define a strategic way forward.

Media Contact:

Alessandro Speciale
Tel.: +49 172 1670791
email: alessandro.speciale@ecb.europa.eu

SOURCE:  European Central Bank